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Friday, May 25, 2018

Thrifty Thinking: Professionals and Student Loan Debt

Ever wonder which professionals are doing the best when it comes to student loan debt? For example, did you know that optometrists have the highest percentage of monthly income devoted to student loans? Also, veterinarians have the highest median loan balance as a percentage of their annual income.

These types of insights and more were revealed in a recent Credible survey report. Data for the report came from over 91,000 graduate degree holders. They answered questions about their student loan situation, and the results are surprising.

Professionals Paying More Per Month

As mentioned, optometristspay a higher percentage of their monthly income towards student loans at 14.9 percent. Next come veterinarians (12.6%), physician assistant (11.6%), dentists (11.5%), and pharmacists (10.9%). Lawyers pay 9.4 percent and doctors pay 7.5 percent of their monthly paycheck towards student loans. In some cases, part of the debt held by these professions may be due to personal loans.

Professionals Paying Less Per Month

At the other end of the spectrum are those paying the least per month on student loans as a percentage of their monthly income. The degrees they hold are:

Computer science = 6.4 percent

MBA = 6.8 percent

Finance (non-MBA) = 7 percent

Nursing = 7.1 percent

Accounting = 7.2 percent

How Much Time Left On Loan

Another variable the study looked at was how long each profession has to pay back their student loans. Lawyers (15.4 years), dentists (14.9 years), and veterinarians (14.8 years) topped the list. Engineers (12.7 years), nurses (13 years), and public policy degree holders (13 years) appear to be paying back their loans faster.